Indian private equity - a good time to be a buyer
June 2008

Hot on the heels of the first Deloitte MENA Private Equity Confidence Survey, we’re delighted to announce the findings of the latest study of the Indian private equity market. The results of this, the third study in the Indian series, show some interesting shifts in market sentiment over the last year or so.

Completed every six months and involving in-depth conversations with senior executives at the leading private equity firms active in India, the Deloitte India Private Equity Confidence Survey provides a key indication of which direction market trends are moving in.

The headline findings this time…

• Big shift in sentiment regarding entry multiples, with two-thirds expecting a decrease; a year ago, only 13% anticipated a decrease
• Significant fall in optimism regarding exit outlook; the recent stock market correction has impacted heavily on IPO levels
• Further evidence of downward pressure on returns, over half expecting a decrease versus less than a quarter a year ago
• Despite market conditions, no let-up in the rise in the number of funds expected to target India
• Lack of leverage in the Indian market means the country remains relatively unaffected by the credit crunch, further increasing its attractiveness at a global level
• Valuation and competition concerns are replaced by macro and infrastructure challenges on respondents’ list of biggest market hurdles
• Confidence in the long-term potential of Indian private equity remains high

With all our work, we structure our approach to ensure that we meet the specific needs of our clients. In the case of the Deloitte Indian Survey that means gleaning the candid views and opinions of the very top people in Indian private equity today, and challenging them to really think about what’s making their market tick.

As Chris Ward, Head of Global Corporate Finance Advisory at Deloitte, puts it:

Arbor Square’s research approach has given us real depth of insight into how the India private equity market is developing, and what the players in the India private equity market are thinking.

If you’d like to see a summary report for this latest India survey please get in touch and we’d be delighted to send you a copy. Similarly, if you’d like to receive a summary of the first MENA survey please let us know.

Contact at Arbor Square Associates:

Kevin McNally
kevinmcnally@arborsquare.com
+44 (0) 20 7096 5017